ECONOMY

RES bill hurts solar energy producers

A new bill on renewable energy sources (RES) is expected to tighten up the market in a way that will hurt solar energy producers but will hopefully restore liquidity and eradicate deficits.

The draft law, which was put up for public consultation on Tuesday, provides for the freezing of the photovoltaics market until the end of 2013 (not including domestic solar systems) and an increase in the extraordinary levy in favor of electricity market operator LAGIE for the photovoltaic systems that were connected on high guaranteed prices.

It also dictates the payment of the energy produced by renewable energy sources on the operational costs rather than the marginal price, and allows for the reduction of guaranteed prices for all RES through a ministerial decision and not via new legislation.

The bill is aimed at eliminating the electricity market’s serious cash deficit and will be tabled in Parliament next week, upon the insistence of the country’s international creditors.

Finance Minister Yannis Stournaras admitted that the incentives provided to RES “are causing fiscal problems at the end of the day.”